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Introduction to Spreadsheet Modeling

Objectives:
Be able to apply best practices for spreadsheet modeling
Build models for answering whatif questions
Build models to understand cost and profitability
Build models to understand cash flows and to determine NPV
Build models to facilitate quantity ordering decisions

EXCEL:
Create line charts
Oneway and twoway data tables
Goal seek tool
Use auditing features
Use IF function to model complex logic
Use SUMPRODUCT function
Use VLOOKUP function
Use trendline tool
Use conditional formatting
Use NPV function




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Example 2.1 | Ordering NCAA TShirts
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Business Goal:
Key Variables:
Input variables
Uncertain variables
Decision variables
Key output variable
Other Output variables
Model 1:

Model 2:


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All examples are from Winston and Albright, Practical Management Science, 3e Revised, SouthWestern Cengage Learning,
2009.

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Model 3:

Model 4:



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Model 5:





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Example 2.2 | Projecting the Costs of Bookshelves at Woodworks





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Example 2.3 | Breakeven Analysis at Great Threads









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SkillBuilding Problems





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Example 2.4 | Ordering with Quantity Discounts and Demand Uncertainty






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SkillBuilding Problems





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Example 2.5 | Estimating Sensitivity of Demand to Price at the Links Company



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Example 2.6 | Calculating NPV at Acron


(note hidden rows)


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SkillBuilding Problems









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SkillExtending Problems






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